In his new column, James Foxall, our consumer expert, aims to give you more
smiles per mile.

After writing about cars for 21 years, you could say my career has finally come of age with a weekly column in the flagship motoring section of Britain's best national newspaper.

Until now I've written about all kinds of consumer issues and enjoyed years of road-testing cars for all manner of magazines and newspapers. With this column I'm going to draw on all that experience to save you money with my own, exclusive tips.

Every week I'll tackle different areas of the finances involved with motoring and come up with suggestions that cut the cost of car ownership. This week I'm looking at how you pay for that dream drive in the first place.

Paying for your car Car makers have figured out that the easier and more apparently affordable they make owning a car, the more people they're going to get through the doors. Reflecting that, last year 65 per cent of all private new cars were bought using £19.8bn of dealer-arranged finance. But just because it's easy doesn't mean it's the best way.

The advantage of the Personal Contract Purchase (PCP), which dealers will push your way, is a low headline monthly payment. You're really only renting the car so you just pay off the difference between the full loan and a sum deferred until the end of the agreement, plus some interest. At the end of the agreement, you either pay the deferred amount to own the car outright, hand the car back and walk away, or use the value of the car to contribute towards a replacement.

As an example, I've chosen Britain's best-selling car, the Ford Fiesta. For a five-door in Edge trim (the combination that will best hold its value) the RRP is £10,795. I put down a £1,000 deposit and am given a £250 contribution from Ford. Doing 12,000 miles a year over three years, I'll pay £184.49 a month courtesy of the 7.9 per cent APR. But to own the vehicle outright when the three years is up I'll need to pay another £4,567. With credit charges thrown in, the car will actually set me back £12,218.64 – or a less palatable £339.40 a month. And a lot can happen in three years, from acquiring a family to losing your job.

So what about a personal loan? After a quick trawl of the internet I discovered I could borrow £11,000 for £335.27 a month. With the advertised APR of 14.3 per cent that's £12,070 over three years and cheaper than the PCP.

But there is another way which could really slash your repayments. Currently the most competitive mortgages are offering an APR of about 3 per cent. So assuming it's viable, increase your mortgage. On the two mortgage calculators I used, payments on a £200,000 mortgage will increase between £52 and £106 a month. There will be arrangement costs to factor in, too, but payments will still be significantly cheaper than with the PCP, and you'll own the car.

It also means you're not paying the £1,423.64 extra on the sticker price for the privilege of renting "your" car. And there's the added flexibility of selling the car should your circumstances change.

Choosing a car

Every week I'm going to provide tips on the best ways to make your money go further during the car-buying process.

The vast majority of research into cars is done over the internet but at some point you're going to have to engage physically with the car. And that means picking a dealer.

Just as you researched the make, model, trim level and any bargains, look into the dealer you're planning to use. Check its website and invest some time in searching online to reveal if there are any complaints about them on online forums.

Assuming there are no damning "I hate my dealer" websites set up by disgruntled customers, ring them. Not answering the phone is one of the things customers pan dealers for in surveys. Helpfulness, attitude and communications are also vital for a happy experience, so gauge how you're treated by whoever answers the phone.

The reason you're ringing is to find out how much their labour rates are per hour. One dealer's car might be cheaper but if workshop costs are pricier, it'll eat into your saving. Then ask if they run a loan car scheme or have a courtesy bus to a local town. If they do it'll make the relationship with an out-of-town dealership much easier, more enjoyable and cheaper.

Finally, consider where the dealership is. If one dealer is 20 miles in the wrong direction from work, "just popping in" could become impossibly awkward. Throw in the fuel and time wasted and the small amount of money it might save you in purchase price will quickly evaporate in extra cost and aggravation.

Deal of the week

It's not every week you can get nearly a quarter off the list price of one of the best-selling cars in Britain. But a Nissan Qashqai 1.5 dCi Acenta for £15,908 – that's £3,882 lower than list – is well worth a look. See for yourself at discounted-new-cars.com.

Tweet me your deal or catch up with all the latest money saving offers on @foxyfinance